Embed Size (px)
Citation preview
YEAR IN REVIEW
2018:
A LETTER FROM ANDREW
Happy New Year, and thank you for being a part of the OpenGate Capital community. I am pleased to present this Year in Review from 2018, as well as preview our year ahead.
As Founder & CEO, I’m incredibly proud of what our team accomplished in 2018, and I’m even more excited about the deals we’ve signed in January to set 2019 on the right trajectory. In the last 15 months, we completed two platform acquisitions, two strategic add-on acquisitions, and realized two pre-fund investments in Europe. We also signed agreements to acquire three new platform investments across the US and Europe, and we are now working toward the completion of these acquisitions by early Q2 of 2019. In addition to our investment activity, we made two key additions to our senior leadership team: Shawn Haghighi as our General Counsel and Chief Compliance Officer, and Paul Bridwell as our Managing Director of North American Operations.
In January 2019, we formally launched OGX TM, our digital transformation capability as part of our firm’s overall strategy to drive exponential growth in the businesses we acquire. OGX leverages technologies including 3D printing, digital manufacturing, robotics, applied AI, and advanced predictive and prescriptive analytics. These ‘XPotential TM’ capabilities will be applied to select investments in our portfolio to maximize value.
We are committed to our mandate of realizing potential and acquiring opportunities where our vision and organization skill set can drive lasting, positive change.
On behalf of the entire team at OpenGate, I wish you all a productive and successful 2019!
Regards,
Andrew NikouFounder & CEO
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
2
PORTFOLIO ACTIVITY
2018 / 2019 ACTIVITY SNAPSHOT
2
2
2
PLATFORMS
ADD-ONS
REALIZATIONS
• Formally Launched OGx Digital
Transformation Capability
• Completed acquisition of G.H.
Chemicals, a strategic add-on to
EverZinc
• Signed acquisition agreement to
acquire European-based silicon
carbide division from Saint Gobain
• Signed acquisition agreement
to acquire US-based Sargent &
Greenleaf from Stanley Black &
Decker
• Signed acquisition agreement
to acquire SMAC, a European
waterproofing business from Colas
Group
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
2019
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
3
PLATFORM ACQUISITION OF FICHET SECURITY SOLUTIONS
OpenGate Capital Fund I
ACQUIRED: DECEMBER 2018
SELLER: GUNNEBO AB
Fichet is a leading provider of security
solutions, including electronic
security, entrance security, cash
handling, safes, vaults, and security
services. With approximately 930
full-time employees across three
countries in Europe, Fichet was ranked
in France as the #1 brand in Security
Doors & Partitions, and Safes & Vaults,
as well as #3 in Electronic Security &
Cash Management.
Fichet is the ninth and final platform
acquisition in OpenGate Capital’s first
institutional fund, and represents an
exciting roll-up opportunity.
fichet-bauche.com
PLATFORM ACQUISITION OF JØTUL GROUP
OpenGate Capital Fund I
ACQUIRED: FEBRUARY 2018
SELLER: RATOS
Jøtul is one of the world's oldest producers of stoves, inserts, and fireplaces. Built on 165 years of proud Norwegian heritage, Jøtul combines timeless designs and fine craftsmanship with a passion for warmth and products that stand the test of time. With sales in 43 countries and six continents, Jøtul stands out as a leading brand in the market.
Within the first 12 months following the acquisition, OpenGate has driven value in the investment with initiatives such as relocating operations to lower-cost EU countries, streamlining overly complex production processes, and identifying add-on opportunities to enhance Jøtul’s core offering.
PORTFOLIO ACTIVITY
jotul.com
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
4
PORTFOLIO ACTIVITY
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
ADD-ON ACQUISITION TO JØTUL: AICO
OpenGate Capital Fund I
ACQUIRED: NOVEMBER 2018
SELLER: AMBIENTA SGR
In November, OpenGate acquired
AICO, an Italian manufacturer of
home heating products, as an add-
on acquisition to support Jøtul’s
transformation plan. This transaction
included two of the company's
brand divisions, Ravelli and Ellidi.
AICO’s synergistic capabilities will
enhance the Jøtul product portfolio
with pellet technology products, a
growing market for consumers
demanding an alternative to wood-
based home heating products.
jotul.com
ADD-ON ACQUISITION TO EVERZINC: GH CHEMICALS
OpenGate Capital Fund I
ACQUIRED: JANUARY 2019
SELLER: PRIVATE
OpenGate Capital's portfolio company, EverZinc, acquired G.H. Chemicals Ltd. and Microzinc Inc., collectively referred to as “GHC.” Established in 1974, GHC is based in Saint Hyacinthe, Quebec and is a global leader in the production of zinc materials.
This company is an opportune investment for EverZinc, providing product and market expansion opportunities through its world class facilities. GHC produces zinc oxide for use in pharmaceutical and food products, fertilizer and feed grades, and rubber compounding processes.
ghchemicals.com
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
5
REALIZATION OF NORPAPER
OpenGate Capital Pre-Fund
REALIZED: JUNE 2018
BUYER: GEMAYEL & CHAOUI INDUSTRIEL
GROUP
Headquartered in northern France with over 200 employees, NorPaper is a leading producer of white top testliner paper that is sold to European packaging manufacturers.
In 2015, OpenGate completed an accretive add-on acquisition of a complementary paper business and integrated the business into NorPaper. This propelled NorPaper to become the number one independent testliner paper producer in France and among the top five in Europe.
In June of 2018, NorPaper Group was sold to Gemayel & Chaoui Industriel Group.
norpaper.com
REVENUE GROWTH
EBITDA GROWTH
2011(at entry)
2018(at exit)
62.5%
2011(at entry)
2018(at exit)
533.5%
PORTFOLIO ACTIVITYPORTFOLIO ACTIVITY
REALIZATIONOF NAKAN
OpenGate Capital Pre-Fund
REALIZED: JANUARY 2019
BUYER: WESTLAKE CHEMICAL CORPORATION
OpenGate acquired NAKAN as one of
three business lines within IVY Group.
NAKAN is a leader in PVC compounding,
with world leadership in automotive
applications and a strong position
in Medical, Building & Construction,
and other applications. With over
620 employees across eight plants,
a sales office, a research facility, and
its headquarters, NAKAN has a unique
portfolio of technologies which allows
the company to access major customers
all over the world, and deliver bespoke
products designed for customers’
specific needs.
In Q3 of 2018, OpenGate agreed to
sell the business to Westlake Chemical
Corporation.
nakan.com
REVENUE GROWTH
EBITDA GROWTH
2011(at entry)
2018(at exit)
16%
2011(at entry)
2018(at exit)
65%
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
6
At OpenGate Capital, we believe that
potential is power. We continuously
seek businesses that are strategic to
our platform investments and those
that are well-suited for our investment
strategies in our four core sectors:
CALLING ALL ADD-ON OPPORTUNITIES
INDUSTRIALS
TECHNOLOGY
CONSUMER
BUSINESS SERVICES
To discuss divestiture opportunities on your company’s horizon, please contact:
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
7
PORTFOLIO COMPANIES IN THE NEWS
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
READ THE FULL ARTICLE
hearthandhome.com
THE LONGEST INSTALLDATE: November 2018
OpenGate portfolio company Jøtul, a
leading producer of stoves, inserts, and
fireplaces, collaborated with co-owner
and president of Fireside Stone & Patio,
Tom Gross, to provide two wood stoves
for a remote, high-altitude Tanzanian
orphanage. The successful installation
of the stoves represents a significant
global community contribution and
achievement for Jøtul.
EVERZINC + XPOTENTIAL LABS PARTNERSHIPDATE: October 2018
EverZinc, an OpenGate Capital portfolio
company and the leading global
provider of specialty zinc materials,
announced the formation of EverZinc
Digital, a dedicated innovation and
transformation unit, with a clear mandate
to accelerate the development of
sustainable, scalable, and economical
zinc-based products and applications.
businesswire.comREAD THE FULL ARTICLE
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
8
OpenGate Capital is proud to announce recent additions to our team:
SHAWN HAGHIGHI
General Counsel &
Chief Compliance Officer
Experience: Experience:Mr. Haghighi is based in
OpenGate Capital's Los Angeles
office, and oversees legal matters
for the firm and its portfolio
of companies. He supports
global M&A efforts during the
negotiations and diligence
processes, and he oversees legal
matters for the firm’s portfolio.
Additionally, Mr. Haghighi
leads all corporate compliance
and legal affairs for OpenGate
Capital’s global investment
activities and serves as Chief
Compliance Officer for the firm
and its institutional funds.
PAUL BRIDWELLManaging Director,
North America Operations
Mr. Paul Bridwell is based in
OpenGate Capital's Los Angeles
office as Managing Director, and
is responsible for the operations
and portfolio management of
OpenGate's North American
investments.
Paul is a tenured professional
with 15 years of private equity
experience and has a proven track
record of delivering operating
results leading to superior investor
returns.
read more read more
STRATEGIC NEW HIRES
JOINED: NOVEMBER 2018JOINED: OCTOBER 2018
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
9
2018 CEO CONFERENCEOpenGate Capital hosted a three-day
conference in Los Angeles for the CEOs of
its portfolio companies and the firm’s team
from its Los Angeles and Paris offices. The
event began with a welcome reception for
OpenGate CEOs on December 2nd, and
was followed by two days of presentations
and workshops from several well-regarded
authors and thought leaders. It ultimately
challenged conventional methods of
thinking and inspired new strategies for
traditional businesses.
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
Tour of OGX lab in Ventura, CA hosted by
XPotential Works
PROGRAM SPOTLIGHT
Peter Diamandis, Founder & Chairman of X Prize
Foundation
Avi Reichental Founder, Chairman & CEO of
XPotential Works
General George W. Casey Jr., US Army, Retired
Keith Ferrazzi, Chairman & Founder of Greenlight
Eric Pulier, Entrepreneur & Founder of vAtomic
Systems
FEATURED SPEAKERS
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
10
Developed in
2018 and officially
launched in
2019, OGX is
OpenGate’s digital
transformation
growth capability
that leverages
modern
technologies to
help businesses
within OpenGate’s
portfolio achieve
maximum potential.
We have specifically developed technology-
enabled capabilities to drive exponential
growth for our portfolio companies.
3D PRINTING
3D printing empowers portfolio companies to reduce the
length of their manufacturing processes from years to
months, while also giving them the ability to customize for
every client and produce efficiently at low volumes.
ROBOTICS AND APPLIED AI
Industrial businesses can realize significant financial
benefits through incorporating robotics and autonomous
manufacturing systems.
DIGITAL MANUFACTURING
Companies can model, simulate, and analyze all machines,
tooling, and input materials, resulting in operational
optimization of legacy production processes.
ADVANCED PREDICTIVE AND PRESCRIPTIVE ANALYTICS
Multi-sensor data acquisition and applied AI advanced
analytics harvest the mass data available to small- and
medium-sized businesses, helping to draw conclusions that
enable optimal profits.
OGX: TAKING FULL POTENTIAL TO ITS "XPOTENTIAL"
Mr. Joshua Adams • Managing Director • [email protected] • +1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
11
www.opengatecapital.com
OPENGATE CONTACTS
Europe
22 Avenue de Friedland
Paris, France 75008
Tel: +33 (0) 1 40 06 01 58
North America
10250 Constellation Boulevard, 30th Floor
Los Angeles, CA 90067
Tel: +1 (310) 432 7000
MR. JOSHUA ADAMS •
Managing Director, Origination
+1 310 432 7000
MS. ALANNA CHAFFIN •
Head of Investor Relations & Communications
+1 310 432 7000
OP
EN
GA
TE
CA
PITA
L •
YE
AR
-IN-R
EV
IEW
• 2
01
8
1212
